Vacancy Rebate Public Information Centre

On April 18, 2018, Northumberland County Council voted to discontinue the Vacant Unit Property Tax Rebate Program, which delivers tax rebates to owners of vacant commercial and industrial properties.

Applications received in 2018 for the tax year period of January 1, 2017 to December 31, 2017 will be processed. There will be no program offering for the 2018 tax year and beyond. (Note: subject to final approval by the province)

This decision follows an extensive review by local municipal staff of policy options for this program, as well as consideration of input from members of the public through an online survey and a Public Information Centre.

Background

Under the Vacant Unit Property Tax Rebate Program, building owners could apply for an annual property tax rebate of 35 per cent for vacant industrial space and 30 per cent for vacant commercial space. This rebate program was originally established by the Province to compensate property owners for tax increases resulting from property tax reform in 1998. Since then, property assessment methods adopted by the Municipal Property Assessment Corporation (MPAC) - whose assessments form the basis for property taxation—have, to a large extent, essentially resolved this issue. This is also not a benefit which is afforded to other property classes such as residential or multi-residential properties, which may experience a similar form of vacancy from time-to-time.

Recouping the cost of program rebates results in increased property taxation to Northumberland’s other tax classes—primarily residential—with the combined upper-and lower-tier municipal impact totalling $269,208 in 2016. The cost and number of rebates by municipality is summarized below:

Considering this, along with the concern that this program may in fact discourage property development, hindering community/economic growth and development goals, local municipalities are evaluating opting out of – or phasing out – this program.

On March 21, 2018 Northumberland County hosted a Public Information Centre to seek public feedback about this program. A survey was also made available for members of the public to provide their feedback.

Northumberland County staff compiled the results of the review with local municipalities, as well as public feedback through the survey and Public Information Centre, into a final recommendation to County Council.